Priya Sharma (Company Secretary & Student.MBA) (998 Points)
30 September 2009Hiii everyone.
Can anybody explain me what exactly is Informatin memorandum.please also provide the format of the same.
Rgds
Priya Sharma
First of all let us understand the simple meaning of the Information Memorandum : Section 60B(3) declares that ``the information memorandum and red-herring prospectus shall carry same obligations as are applicable in the case of a prospectus.''
So, It is one type of Prospectus.
Financial Companies need much more money to carry on their business and they shall have to come with IPO again & again.
So, the concept of Information Memorandum comes into existence.
Those company, which have filed the Prospectus with SEBI, and carry out the IPO and again want to come with the new IPO in the same year, they can do the same by filling the Information Memorandum only & they need not to file Prospectus again.
Information Memorandum is the Crux of the changes happended in the company after filling the Prospectus with the SEBI.
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